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The author of this book is a successful entrepreneur, corporate executive, and award-winning writer who attributes much of his success to living and working alongside the Trappist monks of Mepkin Abbey for seventeen years. As a frequent monastic guest, he learned firsthand from the monks as they grew an incredibly successful portfolio of businesses. Service and selflessness are at the heart of the 1,500-year-old monastic tradition's remarkable business success. It is an ancient though immensely relevant economic model that preserves what is positive and productive about capitalism while transcending its ethical limitations and internal contradictions. Combining vivid case studies from his thirty-year business career with intimate portraits of the monks at work, the author of this book shows how Trappist principles can be successfully applied to a variety of secular business settings and to our personal lives as well. The book demonstrates that monks and people like Warren Buffett are wildly successful not despite their high principles but because of them. It also introduces other “transformational organizations” that share the crucial monastic business strategies so critical for success.

Despite social and economic advances around the world, poverty and disease persist, exacerbated by the mounting challenges of climate change, natural disasters, political conflict, mass migration, and economic inequality. While governments commit to addressing these challenges, traditional public and philanthropic dollars are not enough. Here, innovative finance has shown a way forward: by borrowing techniques from the world of finance, we can raise capital for social investments today. Innovative finance has provided polio vaccines to children in the DRC, crop insurance to farmers in India, pay-as-you-go solar electricity to Kenyans, and affordable housing and transportation to New Yorkers. It has helped governmental, commercial, and philanthropic resources meet the needs of the poor and underserved and build a more sustainable and inclusive prosperity. Capital and the Common Good shows how market failure in one context can be solved with market solutions from another: an expert in securitization bundles future development aid into bonds to pay for vaccines today; an entrepreneur turns a mobile phone into an array of financial services for the unbanked; and policy makers adapt pay-for-success models from the world of infrastructure to human services like early childhood education, maternal health, and job training. Revisiting the successes and missteps of these efforts, Georgia Levenson Keohane argues that innovative finance is as much about incentives and sound decision-making as it is about money. When it works, innovative finance gives us the tools, motivation, and security to invest in our shared future.

Moral hazard—the tendency to change behavior when the cost of that behavior will be borne by others—is a particularly tricky question when considering health care. Kenneth J. Arrow's seminal 1963 paper on this topic (included in this volume) was one of the first to explore the implication of moral hazard for health care, and this book examines this issue in the context of contemporary American health care policy. Drawing on research from both the original RAND Health Insurance Experiment and personal research, including a 2008 Health Insurance Experiment in Oregon, the book presents compelling evidence that health insurance does indeed affect medical spending and encourages policy solutions that acknowledge and account for this.